Investing.com - European stocks opened sharply higher on Thursday, tracking their U.S. and Asian counterparts as sentiment improved after a positive Chinese manufacturing report and as investors eyed a string of manufacturing data to be released from the euro zone.
During European morning trade, the EURO STOXX 50 advanced 1.16%, France’s CAC 40 surged 1.43%, while Germany’s DAX 30 rallied 1.14%.
Data earlier showed that China's manufacturing purchasing managers' index ticked up to 49.8 in September from 49.7 the previous month. Analysts had expected the index to slip to 49.6 last month.
The upbeat data slightly improved the Chinese economic picture, although concerns over a slowdown persisted.
Financial stocks were broadly higher, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) rallied 1.22% and 1.09%, while Germany's Commerzbank (XETRA:CBKG) and Deutsche Bank (XETRA:DBKGn) gained 0.82% and 0.99%.
Among peripheral lenders, Italy's Unicredit (MILAN:CRDI) and Intesa Sanpaolo (MILAN:ISP) advanced 0.72% and 0.57% respectively, while Spanish banks BBVA (MADRID:BBVA) and Banco Santander (MADRID:SAN) jumped 1.06% and 1.01%.
Elsewhere, beleaguered carmaker Volkswagen (XETRA:VOWG) surged 2.86% after it imposed a hiring freeze at its financing business and cut a shift at a German engine factory as it prepares for a hit to business from cheating in diesel emissions tests.
Repsol (MADRID:REP) SA added to gains, with shares up 2.88% after the Spanish oil and gas company agreed to sell part of its piped-gas business.
In London, commodity-heavy FTSE 100 jumped 1.45%, boosted by sharp gains in the mining sector.
Antofagasta (LONDON:ANTO) rallied 1.66% and Anglo American (LONDON:AAL) surged 2.29%, while rivals Bhp Billiton (LONDON:BLT) and Glencore (LONDON:GLEN) saw shares soar 2.34% and 2.98% respectively.
Shares in Tullow Oil Plc (LONDON:TLW) skyrocketed 11.95% after the company said its unchanged credit facilities shows continued support from lenders during a period of low oil prices.
Financial stocks were also on the upside, as Lloyds Banking (LONDON:LLOY) jumped 1.29% and Barclays (LONDON:BARC) rallied 1.47%, while the Royal Bank of Scotland (LONDON:RBS) advanced 1.65% and HSBC Holdings (LONDON:HSBA) gains 1.72%.
In the U.S., equity markets pointed to a sharply higher open. The Dow Jones Industrial Average futures pointed to a 0.99% jump, S&P 500 futures signaled a 1% rally, while the Nasdaq 100 futures indicated a 1.40% surge.